Global Markets Face Volatility as Precious Metals Sink Amid Rising Margins and Oil Slump
Precious metals fell as margin hikes and lower oil prices weighed on markets. Assets fluctuated ahead of major earnings and central bank policy meetings.
Insights:
Precious metals continued a deep selloff on Monday, impacting global markets alongside a significant drop in crude oil prices and a stronger dollar. This volatility arrived as investors prepared for a heavy schedule of corporate earnings and central bank decisions that are expected to define market sentiment for the coming week. MSCI's global equities gauge edged lower on Monday to 1,043.77, representing a decline of 0.05%.
Silver led the downturn, finishing down 5.56% at $79.92 an ounce after falling as low as $71.33 earlier in the session. This followed a 27% rout on Friday, placing the metal on track for its largest two-day loss since at least the 1980s. Dealers noted that pressure on several silver futures funds in China 
CNcontributed to the selling pressure late last week. In response to the market volatility, CME Group Inc. raised margins on various futures contracts, including those for gold and silver, as a risk-management measure. Spot gold dropped 3.85% to $4,676.28 an ounce, continuing a downward move after a near-10% slump on Friday. Both metals had previously reached record highs last Thursday.
CNcontributed to the selling pressure late last week. In response to the market volatility, CME Group Inc. raised margins on various futures contracts, including those for gold and silver, as a risk-management measure. Spot gold dropped 3.85% to $4,676.28 an ounce, continuing a downward move after a near-10% slump on Friday. Both metals had previously reached record highs last Thursday.
